Which of the following statements about GDP is correct?
A)GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy's labor force.
B)Money continuously flows from households to government and then back to households,and GDP measures this flow of money.
C)GDP is to a nation's economy as household income is to a household.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

GDP is a measure of the total value of goods and services produced in an economy over a specific period, while household income refers to the income earned by a household over a particular period. While GDP can give an idea of an economy's overall performance, it does not necessarily reflect the well-being of individual households. Hence, choice C is the most accurate statement. Choices A and B are incorrect because GDP does not directly measure the unemployment rate, nor does it track the flow of money between households and government.

Which of the Following Statements About GDP Is Correct